Reagor denies Ford Credit's claim vehicles sold out of trust

LUBBOCK, Texas -

Responding to Ford Motor Credit's lawsuit, a late Thursday filing on behalf of Bart Reagor and Reagor-Dykes companies that have not filed for bankruptcy, the defendants deny vehicles were sold out of trust.

Rick Dykes filed his response detailed here, which was more pointed placing blame on former chief financial officer Shane Smith. The filing detailed in this article is for Bart Reagor, Reagor-Dykes II, LLC, Reagor-Dykes Auto Mall I, LLC and Reagor-Dykes III, LLC. The response notes it is not on behalf of Rick Dykes, who is separately represented.

As reported earlier, Ford Credit commended Reagor-Dykes following its June audit. New details in Dykes' response show the Auto Group's short-term indebtedness to Ford Credit was about $25 million as of the June audit. But, according to Dykes' filing, Ford Credit notified Smith of irregularities it found in numbers supplied to Ford Credit. Dykes states neither he nor co-owner Bart Reagor were made aware of Ford Credit's impending July 26 on-site review; they were both out of town. According to Dykes' response, it was on that day Smith contacted Reagor and Dykes. They returned to Lubbock the next two days.

Ford Credit sued several Reagor-Dykes companies as well as co-owners Dykes and Reagor July 31, claiming $116 million owed with $41 million due now. The next day many, but not all, Reagor-Dykes companies filed for chapter 11 protection. Reagor and Dykes individually did not, though recent filings show both the co-owners and other R-D companies that did not file for chapter 11 may soon do so.

Reagor's response denies Ford Credit's claim that 147 of 150 vehicles sales reviewed by Ford Credit showed reported sales dates did not match DMV or other publicly available data. It also denies the claim that the average discrepancy of this reporting was 55 days.

The response goes line by line denying many of Ford Motor Credit's claims, starting on page 58 in the pdf below.

In some instances, the response states defendants are "without knowledge of information sufficient to form a belief as to the truth of the allegations". This is the response to Ford Credit's allegation of Reagor-Dykes receiving double-financing from Ford Credit.

Reagor denies the estimated amount outstanding to Ford Credit is $113,374,000.00 with $40,434,000.00 due now.

This filing does state Reagor and these Reagor-Dykes companies reserve the right to allege any and all other defenses against Ford Credit.

Further, it states Ford Credit's claims are "barred by the doctrine of unclean hands." No details are given on whose hands. In Dykes' response, he questions the relationship between Ford Credit's Dallas regional manager who oversaw its transactions with the Auto Group and the former Reagor-Dykes chief financial officer.

Similar to Dykes' response, this filing notes there has not been adequate time to focus on this law suit because of the complicated nature of the Reagor-Dykes Auto Group filing for bankruptcy and now working with a chief restructuring officer. The response states the defendants "reserve the right right to assert potential counterclaims, to supplement and amend this answer and the affirmative defenses, and to assert any other grounds to deny any recovery to Ford Credit or to add any cross-claim and/or third-party claim."

Senior U.S. District Judge Sam Cummings last month granted an extension for defendants in the suit to respond. That deadline is Friday. The defendants had requested a date of Oct. 1.

Part of enjoying the holiday season includes making sure your car is secured. Nearly 25,000 vehicles were reported stolen nationwide during the holidays in 2016, according to the National Insurance Crime Bureau. Of those, about 2,300 were reported on Black Friday, alone. Jennifer Anderson, with the South Plains Auto Theft Task Force said there are many reasons why there is a spike in auto thefts during the holiday season. "When they are enjoying the...

Part of enjoying the holiday season includes making sure your car is secured. Nearly 25,000 vehicles were reported stolen nationwide during the holidays in 2016, according to the National Insurance Crime Bureau. Of those, about 2,300 were reported on Black Friday, alone. Jennifer Anderson, with the South Plains Auto Theft Task Force said there are many reasons why there is a spike in auto thefts during the holiday season. "When they are enjoying the...

(Billy Calzada/The San Antonio Express-News via AP). In this Saturday, Nov. 17, 2018, photo firefighters and investigators look over a vintage World War II P-51D Mustang aircraft after a deadly crash in Fredericksburg, Texas.

A group that organizes vintage fighter plane rides for veterans says a passenger who was killed when a World War II-era aircraft crashed in South Texas had been a WWII pilot.

A group that organizes vintage fighter plane rides for veterans says a passenger who was killed when a World War II-era aircraft crashed in South Texas had been a WWII pilot.

Open Door is thrilled to announce it has moved 40 chronically homeless individuals into Permanent Supportive Housing in part through its Housing program expansion. In partnership with landlords across the Lubbock community, Open Door has been able to place some of Lubbock’s most vulnerable people into the safety, stability, and civility of a home.

Open Door is thrilled to announce it has moved 40 chronically homeless individuals into Permanent Supportive Housing in part through its Housing program expansion. In partnership with landlords across the Lubbock community, Open Door has been able to place some of Lubbock’s most vulnerable people into the safety, stability, and civility of a home.

Lubbock Police Department crash investigators are currently on scene of a multiple vehicle crash at Quaker Avenue and South Loop 289. At this time it appears five vehicles have been involved in the crash and one person has been taken to the hospital with serious injuries.

Lubbock Police Department crash investigators are currently on scene of a multiple vehicle crash at Quaker Avenue and South Loop 289. At this time it appears five vehicles have been involved in the crash and one person has been taken to the hospital with serious injuries.

City of Lubbock offices will be closed Thursday, November 22 and Friday, November 23 in observance of the Thanksgiving holiday. Regular business hours will resume on Monday, November 26. Residential Regularly scheduled trash pickup will not occur Thursday, November 22 or Friday, November 23.

City of Lubbock offices will be closed Thursday, November 22 and Friday, November 23 in observance of the Thanksgiving holiday. Regular business hours will resume on Monday, November 26. Residential Regularly scheduled trash pickup will not occur Thursday, November 22 or Friday, November 23.